GameSquare stock unveils a $100M ETH treasury plan for high-yield on-chain gains, joining other Nasdaq firms embracing crypto treasury moves.
Nasdaq-listed GameSquare likewise disclosed its $100 million Ethereum treasury strategy on July 8, following in the footsteps of SharpLink Gaming (NASDAQ: SBET).
This announcement caused GameSquare stock price to rise by 58%. ETH is becoming increasingly well-known as a Treasury vehicle because of robust institutional demand, ETF inflows, and ecosystem expansion.
On Tuesday, the GameSquare stock gained an extra 7% during after-market hours, closing at $1.54.
Ethereum Treasury Plans Drive GameSquare Stock Increases
Following the Minneapolis-based digital media company’s announcement of ETH Treasury plans on July 8, GameSquare stock price surged 58% due to robust buying activity.
The statement was made after SharpLink Gaming (NASDAQ: SBET), the biggest corporate ETH holder, added $19.2 million worth of ETH purchases to its portfolio.
On Tuesday, an underwritten public offering of 8,421,054 shares of GameSquare stock was priced at $0.95 per share.
The offering is anticipated to generate roughly $8.0 million in gross revenues, before commissions, underwriting discounts, and other offering costs are subtracted.
The business declared that the profits would be used to work with crypto-native capital management company Dialectic to implement its $100 million Ethereum treasury plan.
GameSquare CEO Justin Kenna commented on the development, saying:
“We’ve partnered with one of the world’s top crypto investment firms to generate real, on-chain yield while deepening our expertise in decentralized finance, pursuing new revenue streams, and strengthening our balance sheet. This new treasury management strategy enhances our financial flexibility and allows us to support a defined capital allocation plan that is focused on pursuing additional ETH asset purchases”.
The company will use Dialectic’s unique Medici platform, which uses machine learning, sophisticated risk controls, and automated optimization to produce higher risk-adjusted returns, to implement its Ethereum treasury strategy.
The method seeks to surpass the current 3-4% yields offered by typical ETH staking benchmarks, with targeted yields ranging from 8% to 14%.
Institutional Competition For ETH Holdings
SharpLink Gaming, which aims to become the MicroStrategy of Ethereum holdings, is leading the institutional race to Ethereum stacking.
To date, the corporation has increased its holdings by 205,634 ETH.
Institutions are drawn to establish an ETH treasury because of its added yield-generating potential through staking.
In a significant move, Bit Digital, which is listed on the Nasdaq, recently sold all of its Bitcoin assets and switched to Ethereum staking.
The business is positioned to provide higher payouts through ETH staking as mining expenses climb.
However, over the past month, institutional purchases have also increased with Ethereum ETF inflows.
Most of the inflows have been led by BlackRock iShares Ethereum Trust (ETHA), which currently has 1.826 million ETH in its coffers.
The demand for Ethereum as a long-term asset class is increasing due to more institutional and corporate involvement.
As a result, a significant base would be built, and the price of ETH would continue to rise steadily.
At $2,500, Ethereum is creating a base, and investors are waiting for the next significant breakout to reach $3,000 or higher.
